Fortinet Inc (NASDAQ: FTNT) stock surged over 3.8% in the pre-market session of Feb 7th, 2019 (Source: Google finance) as the company posted better than expected results for the fourth quarter of 2018. The company reported fourth-quarter net income of $182.8 million, as compared with a loss of $29 million, in the year-ago period. In the fourth quarter of 2018, cash flow from operations was $180.2 million as compared to $157.5 million in the same quarter of 2017. Free cash flow was $168.6 million during the fourth quarter of 2018, compared to $143.9 million in the same quarter of 2017.
FTNT in the fourth quarter of FY 18 has reported the adjusted earnings per share of 59 cents, beating the analysts’ estimates for the adjusted earnings per share of 52 cents, as per the analysts surveyed by FactSet. The company had reported the adjusted revenue growth of 22 percent to $507 million in the fourth quarter of FY 18, beating the analysts’ estimates for revenue of $496.3 million. Billings came in at $649.2 million, a 22% rise from a year ago, while analysts had been looking for $629.1 million. Product revenue was $200.8 million for the fourth quarter of 2018, an increase of 24% compared to $162.1 million in the same quarter of 2017. Service revenue was $306.2 million for the fourth quarter of 2018, an increase of 20% compared to $254.5 million in the same quarter of 2017. Non-GAAP operating income was $130.6 million for the fourth quarter of 2018, representing a non-GAAP operating margin of 26%. Non-GAAP operating income was $78.7 million for the fourth quarter of 2017, representing a non-GAAP operating margin of 19%.
Meantime, in the fourth quarter, Fortinet has signed a seven-figure deal with Backmine [ph], a European retailer with 4,000 stores in 26 countries. Further, during the fourth quarter, Fortinet and Symantec announced a partnership agreement to provide customers with the industry most comprehensive and robust security solutions across endpoint network and cloud environments
During the fourth quarter of 2018, Fortinet had repurchased 1.3 million shares of its common stock for a total purchase price of $92.0 million. During the fourth quarter of 2017, Fortinet repurchased 7.9 million shares of its common stock for a total purchase price of $322.4 million
For the first quarter, Fortinet expects adjusted earnings of 37 cents to 39 cents a share on revenue of $465 million to $475 million with billings of $515 million to $535 million. Analysts expect earnings of 41 cents a share on revenue of $470.1 million with billings of $537.2 million.